Breaking down Zimbabwe's 2025 national budget: wha...

Breaking down Zimbabwe's 2025 national budget: what you need to know

Philemon Jambaya

Zim Now Editor

Zimbabwe's Minister of Finance, Economic Development and Investment Promotion recently presented the 2025 national budget statement in the National Assembly. This move was in line with section 305(1) of the Constitution, which requires the Minister to present a statement of the government's revenues and expenditures for the next financial year.

The budget statement outlines the economic and political environment in which the budget is being presented. It also explains the assumptions that underpin the budget and provides an outlook on economic growth and allocations to various ministries and institutions.

The estimates, commonly referred to as "the blue book," provide a detailed breakdown of the government's estimated revenues and expenditures for the coming year. This includes specific sectors from which revenues will come and proposed expenditures for each ministry, department, and agency.

The debt statement, as required by section 300(4)(b) of the Constitution, provides a comprehensive overview of Zimbabwe's public debt. As of September 30, 2024, the country's public debt and publicly guaranteed debt stood at US$21.1 billion, with US$12.3 billion being foreign debt.

The Appropriation Bill, published in last Friday's Gazette, outlines the total amount of money allocated to each government ministry, department, and institution. The Finance Bill, also published in the Gazette, sets out how the government plans to raise revenue to meet its projected expenditure in the coming year. The bills propose new taxes, including a 25% tax on rental income from properties converted to business use, a 10% withholding tax on sports betting winnings, and a 0.5% tax on fast food sales.